Shares of Paytm, MobiKwik and Pine Labs declined amid reports that the proposed UPI merchant discount rate could be deferred to January 2027 from October 15
A 0.4 per cent merchant discount rate takes effect on October 15, while small payments remain free; UPI recorded 802 million average daily transactions in September.
RBI Governor Sanjay Malhotra said a small MDR on select UPI payments is unlikely to materially affect transaction volumes as the new charge takes effect from October 15
Banks have been asked to strengthen end-to-end digital lending and widen access to UPI credit lines as the government pushes deeper financial inclusion
Clocks highest daily avg volume of over 800 mn transactions
UPI processed an average 802 million transactions a day in September, up about 1 per cent from August, while transaction value also remained firm despite the MDR backlash
The Supreme Court has asked the Centre to explain the basis for UPI charges above ₹2,000, but refused to stay the new framework set to take effect from October 15
Mobile phone retailers across India plan to observe October 2 as "No UPI Day" in protest against 0.4 per cent merchant discount rate charges on UPI transactions, a senior official of industry body AIMRA said. The government has introduced a 0.4 per cent fee on UPI transfers exceeding Rs 2,000 to merchants from October 15, while exempting person-to-person transactions as well as small payments from any charges. "The All India Mobile Retailers Association (AIMRA) has called for a 'NO UPI DAY' on October 2, 2026, to highlight the concerns of mobile retailers regarding the 0.4 per cent Merchant Discount Rate (MDR) applicable to eligible merchant UPI transactions," AIMRA Vice President and President for Delhi NCR region, Tarvinder Singh, said in a statement. He said retailers will symbolically cover UPI QR Codes with black cloth and refrain from accepting UPI payments on Gandhi Jayanti. According to a representation sent to Finance Minister Nirmala Sitharaman by AIMRA, the move to impos
The Supreme Court will on Monday hear a plea challenging the Centre's decision to impose a Merchant Discount Rate (MDR) on specified UPI person-to-merchant transactions of over Rs 2,000. Ending nearly six years of fully free UPI payments, the government has introduced a 0.4 per cent fee on transfers worth over Rs 2,000 made to merchants through the UPI platform from October 15 while explicitly ring-fencing everyday person-to-person transactions and small payments from any charge. The MDR will be capped at Rs 300 for payments of Rs 75,000 and above. Essential and thin-margin sectors -- railways, telecom, insurance, fuel and agricultural inputs -- will pay a flat MDR of Rs 5 per transaction above Rs 2,000. Payments into mutual funds, securities and through stockbrokers and dealers will attract 0.02 per cent MDR, also capped at Rs 300. Person-to-person (P2P) transfers -- which make up 37 per cent of UPI's transaction volume and 70 per cent of its transaction value -- will continue to
Finance Minister Nirmala Sitharaman has said the charge on specified merchant transactions above ₹2,000 will be borne within the payments ecosystem, while UPI payments by customers will remain free
From October 15, MDR will apply to certain UPI payments above ₹2,000 made to large merchants, while customers and eligible small vendors will continue to pay no fee
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An SBI official says the UPI merchant discount rate could cover the bank's transaction costs and leave a small surplus, while merchants may split payments to avoid the fee
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A fee on UPI transactions is economically logical, but it reflects the govt's evolving approach to one of its key political constituencies
NITI Aayog's former vice-chairman Rajiv Kumar on Monday suggested the government to continue with zero-fee UPI transactions for at least a few more years until the currency-to-GDP ratio shows some tendency to decline, and then review the situation. Kumar told PTI that he is not in favour of charging any fee from merchants for using UPI for any transaction value, and the government should treat it as a public good with extensive positive externalities. "Their overall benefits well far outweigh the cost of Rs 20,000 crore that the public exchequer has to bear for maintaining the UPI infrastructure. "...so let's continue with zero-fee UPI transactions for at least a few more years until the currency-to-GDP ratio shows some tendency to decline," he said. While 96 per cent of unit transactions are less than Rs 2,000, it is estimated that nearly 66 per cent of transactions by value are above this level. "This presents a very significant opportunity for transactions to shift back to cash
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Merchants receiving up to ₹1 lakh a month in eligible UPI QR payments remain outside the new MDR regime, but repeated breaches can trigger reclassification to P2M
Proposal needs Sebi representation, followed by RBI, govt nod
Congress says no specific UPI fee proposal was discussed by the finance panel, disputing the government's claim of MPs' support